Apple is now a phone company

Apple released their results yesterday after another blockbuster quarter. You may remember that in Q4 they reported the largest corporate quarterly earnings of all time. Without the Christmas bump last quarter was always going to be less, but it still came in as the company’s second best quarter ever.

What I hadn’t realised is the extent to which they’ve become a phone company. As you can see from the chart above iPhone revenues were 3x all their other product lines combined. I see Mac computers everywhere and would have guessed their sales were rising faster than they are.

I wonder if we will see watches on the chart next quarter..

Note: the other surprising thing for me in these results was the extent of Apple’s business in China. Chinese revenues are up nearly 3x over the last two quarters, have passed sales in Europe and are now nearly 80% of revenues in the US.

You might be interested in this graph showing Mac sales from 2002-2014 which presents a much clearer picture http://www.statista.com/statistics/276308/global-apple-mac-sales-since-fiscal-year-2002/
Typically there is a pattern of Mac’s demographic purchasing Macs every 3-4years, but over the last ten years or so, there has been a considerable and steady growth. In 2007-2009, iPods were their best selling item, selling 50-54 million units. I would say that although iPhones are currently doing well, their growth in computer sales is rising steadily amid a global drop overall in PC sales.